US Coin History: The Mint Branches Out

The American people largely believed it was the
Manifest Destiny of the United States to expand westward. The siege of
the Alamo, the Mexican War, and the 49er Gold Rush were some of the
most important defining events during this time. As the United States
extended its
boundaries, new branch mints were established to serve the needs of the
growing nation.

The "Coins & History Chapters" button at upper right opens up other
units in our US Coins & History section. The links directly below
are sub headings in "The Mint Branches Out" chapter.

John Gast's American Progress
depicts a symbolic Liberty unrolling telegraph wire, as settlers head
west. Indians can be seen in retreat. Public domain image.

From the earliest colonial times, rugged
pioneers had been drawn to the
vast expanses of America's frontier. Successive generations of settlers
pushed the boundaries of the United States ever more westward.

By 1820, most of the nation east of the Mississippi River had been
organized into states. Immediately to the west of the Mississippi lay
the fertile soil of the Great Plains, and beyond that, the majestic
Rockies, where a hardy breed of "Mountain Men" discovered trails and
passes that others would later travel.

To the far northwest beckoned the Oregon Country, a prolific, heavily
timbered land with easy access to bountiful fishing waters. Looking to
the south was Texas, a sparsely populated region of unknown potential.
And finally, on the coast of the mighty Pacific Ocean was a far away
place called California, blessed with some of the continent's finest
natural beauty.

By the 1830's and 1840's, the desire to expand
westward intensified
across all sectors of American society. Most people came to believe it
was the purpose of the United States, or its manifest destiny, to own
all the territory between the Atlantic and the Pacific. Thus, "Manifest
Destiny" became the guiding principle under which the West was won.

As new states entered the Union, the triumphant expansiveness of
Manifest Destiny was pushed off center stage by an old divisive issue
taking on new proportions: the question of slavery. As we shall see in
the next chapter, the debate became so contentious that the nation
eventually ripped itself apart, resulting in a horrible civil war.

Stephen F. Austin established
large American colonies in Texas and held key posts in the new
Republic. Sam Houston eulogized Austin as the "Father of Texas". Image
courtesy of Texas State Library and Archives Commission.

In 1821, Mexico won independence for itself from
Spain. The new Mexican
government, in a move to encourage development of a thinly populated
area we know today as southeastern Texas, offered land grants to
anyone, including Americans, who would be willing to inhabit the land.
In return, settlers promised to obey Mexican law and observe Roman
Catholicism.

Among the first Americans to receive a land grant was Moses Austin,
originally of Connecticut, who planned to establish a colony in Texas.
Austin died before his dream could be fulfilled, so the task of leading
the people to Texas fell to his son, Stephen F. Austin. In 1823, the
younger Austin led 300 families to the banks of the Brazos River, where
each family received about 200 acres of fertile farmland and more than
4000 acres of range land.

Under Austin's extraordinary organizational skills, the colony
prospered. Soon, many thousands of Americans flowed into the territory,
attracted by the rich farm soil and the generous land grant policy of
the Mexican government. Some settlers brought slaves and started up
cotton plantations.

By 1830, the number of Americans living in Texas greatly outnumbered
Mexicans, a fact that deeply concerned Mexican authorities. In an
attempt to curtail American influence in Texas, Mexico closed the
border to immigration from the United States, imposed taxes on the
importation of American goods, and restated that slavery on Mexican
lands was prohibited. The Mexican government then sent troops into the
Texas province to enforce its laws.

Davy Crockett fights off
Mexican soldiers with upraised rifle, in the final moments of the Alamo
siege. Crockett and all defenders of the Alamo perished, but Texas
gained a new battle cry "Remember the Alamo!", going on to win
independence a few weeks later. Image courtesy of Texas
State Library and Archives Commission.

The Americans in Texas protested against what
they perceived to be a
violation of their individual rights.

As tensions escalated over the next several years, the Mexicans
responded by sending more troops. Finally, in 1835, violence broke out,
prompting the Texans to reject Mexican rule and declare their desire
for self rule.

In late 1835, General Antonio Lopez de Santa Anna, the latest in a
series of Mexican military dictators, decided to crush the rebellion.
With an army of 6000 men, Santa Anna crossed the Rio Grande headed
north to take care of the Texans once and for all. On February 23,
1836, Santa Anna's army began a siege against 187 men garrisoned at a
fortified former mission called the Alamo, in San Antonio. Commanded by
Lieutenant Colonel William B. Travis, the brave defenders of the Alamo
refused to surrender, despite overwhelming odds. Serving under Travis
in the Alamo included a group of volunteers from Tennessee, led there
by the famous backwoodsman Davy Crockett. On March 6, the Mexicans
stormed the Alamo, finally scaling the walls and killing every last man
inside, but at a cost to Santa Anna of some 1600 troops.

While Santa Anna was preoccupied at the Alamo,
Texas formally declared
its independence from Mexico on March 2. While the heroic standoff at
the Alamo continued, Sam Houston raised an army of Texans to carry the
fight onward.

Houston's forces surprised Santa Anna at San Jacinto on April 21, 1836,
shouting "Remember the Alamo!" as they swept through the Mexican
encampment. The Mexican general himself was taken prisoner, but
bargained for his release when he promised to recognize Texas
independence.

Upon his return to Mexico, Santa Anna reneged on his pledge, but made
no further attempts to corral the feisty Texans. The Republic of Texas,
also called the Lone Star Republic, was born. Not surprisingly, Sam
Houston was elected as its first president.

During their revolution for independence, American sympathy was with
the Texans, but when the new republic petitioned for statehood, strong
opposition arose. Texas permitted slavery, causing members of Congress
from northern states to argue against the admission of another southern
slaveholding state. Others feared that Mexico would be provoked into
war if Texas joined the Union. For these reasons, statehood for Texas
was delayed.

As the election of 1844 approached, the
annexation of Texas became a
major campaign issue.

The Democrats rejected Martin Van Buren, a former president and member
of their own party, in favor of James K. Polk of Tennessee, who
strongly favored Texas statehood and westward expansion.

When the electoral college votes were counted, Polk easily outpaced
Henry Clay of Kentucky. A majority of congressional candidates
supporting expansion won likewise, a clear signal the public supported
Texas annexation in particular and Manifest Destiny in general.

With the mandate sent by the voters, outgoing President John Tyler
moved quickly to push a statehood resolution for Texas through both
houses of Congress, ending the controversy over the fate of the Lone
Star Republic. Finally, on December 29, 1845, Texas entered the Union
as the twenty-eighth state.

Population distribution map,
published in 1840. The darker the yellow, the heavier the population. A
clear westward trend is evident. Public domain image.

When the Philadelphia Mint began regular
production in 1793, it was
thought at the time that this facility would fulfill the coinage
demands of our new nation. Within forty years, however, pioneers had
extended the boundaries of the American frontier so distant from
Philadelphia that the Mint could not viably serve the entire nation any
longer.

In order to meet the needs of the growing country, several branch mints
were opened, the first ones striking coins in 1838, located in Dahlonega,
GA, Charlotte,
NC, and New
Orleans, LA. To distinguish the place of origin, small letters, or
"mint marks", were included in the coin's design, differentiating one
mint from another.

We have a Saga
of the US Mint section that goes into greater detail on the various
mints that have ever seen service in this country. You can learn more
about our US Mints and see images by clicking here.

Most people think the first gold rush in US history happened in
California, but actually, it took place in North Carolina and Georgia
decades earlier. For the hard core coin collector historian type, we
suggest obtaining a copy of Neighborhood
Mint: Dahlonega in the Age of Jackson. The details of the creation
of the Dahlonega Mint are described in amazing detail. The Dahlonega
Mint never did produce the quantity of coins originally envisioned,
meaning that some of the coins of this branch mint are amongst the
rarest in American numismatics. A fascinating story, the Dahlonega Mint
continued in operation until the earliest days of the Civil War.

Not everyone was as enthused over the idea of
Manifest Destiny as were the Americans. Still seething over the loss of
Texas, Mexican authorities were concerned over the possibility of
giving up the vast region west of Texas, including California, to the
United States. These and other factors led to a war between the United
States and Mexico, finally breaking out in 1846.

The influence of Spanish
culture was evident throughout California and the southwest. A Spanish
mission is shown above. Image courtesy of Library of Congress.

Mexico's claim on California and the southwest
was inherited from the
Spaniards, dating back to the 15th century. Spanish law, architecture,
culture, and language prevailed throughout the area. However, Mexico's
grip on the territory was weak at best, in large part due to sparsely
populated regions, poor administration and a revolving door of corrupt
government officials.

In 1845, tensions between the United States and Mexico mounted as the
dispute over the southern boundary of Texas magnified. The Mexican
government asserted the boundary between Texas and Mexico was the
Nueces River, while the Americans maintained that it was the Rio Grande
River, about a hundred miles to the south of the Nueces, that separated
the two nations.

James K. Polk is rated as one
of the most effective presidents in US history, who met the demands of
office with perseverance and great administrative skill. Under his
watch, the US expanded all the way to the Pacific Ocean. The only
president ever to achieve all of his platform goals, Polk declined to
run for a second term. Three months after leaving the White House, the
Tennessean was dead. Image courtesy of the National Archives.

When it appeared the Mexicans were willing to
negotiate the dispute
peacefully, President Polk secretly dispatched congressman John Slidell
to Mexico City in November 1845, with instructions to pay off claims of
about $2 million by American citizens against Mexico, if Mexico would
acknowledge the Rio Grande as the southern boundary of Texas.
Furthermore, Polk authorized an offer of $25 million for the purchase
of California and $5 million for the New Mexico territory.

When news of Slidell's mission was leaked, the Mexican populace was
incensed over what they perceived as yet another American expansionist
scheme at the expense of Mexico.

Meanwhile, the Mexican government refused to speak with the American
envoy, sending him home empty-handed. Mexican newspapers ridiculed
American diplomacy and military prowess and called for a "necessary"
war against the United States. Mexican army leaders bragged they could
defeat their northern neighbor in a military confrontation, based on
their experience at expelling the Spaniards and putting down internal
revolutionists. They also assumed Great Britain would come to their
aid, because the British had opposed the United States' annexation of
Texas. They also believed American public opinion would be sharply
divided over support of a war. Clearly, Mexico was itching for a fight.

News of the Mexican War hits
the home front, as shown in this engraving based on the 1848 painting
by R.C. Woodville. Image courtesy of Humanities-Interactive.

In January 1846, President Polk ordered troops
under General Zachary
Taylor to cross the Nueces River, southward into the disputed zone, to
the northern bank of the Rio Grande. In May, Mexican troops crossed the
Rio Grande and skirmished with American forces, killing or wounding
sixteen. If Polk had been waiting for an excuse to ask Congress for a
declaration of war against Mexico, he now had it. On May 13, Congress
obliged. War with Mexico was on.

It soon became apparent that Mexico's boast of military superiority was
premature. Even though the Mexican army was four times the size of the
American army, the natural resources and industrial might of the United
States enabled its troops to be better equipped and supplied. Many
reservists were quickly called into active duty to rectify the initial
imbalance of manpower. They were all trained and led by competent
graduates of the national military academy at West Point. In addition,
the small, but well organized American navy was capable of ferrying
troops to within 250 miles of Mexico City. With these advantages,
American military strategists were able to devise a war plan consisting
of three fronts that effectively subdued the Mexicans.

The first front was to commence from the Rio Grande, where General
Taylor's army sat primed to go. Taylor became a national hero following
his victory at Buena Vista, giving control of northern Mexico to the
Americans. Another group of Americans, led by General Stephen Kearny,
marched from Fort Leavenworth, Kansas, to Santa Fe, taking possession
of the New Mexico territory. From there, Kearny proceeded to California
and joined with Captain John C. Frémont (who had established
temporarily the Republic of California, a.k.a. the Bear Flag Republic)
and other American forces, to completely overcome Mexican resistance in
California.

General Winfield Scott
(center, on brown horse facing right) parades the US army in Mexico
City's main square. To the right of the cathedral is the National
Palace, built atop the ruins of the Halls of Montezuma. Image
courtesy of University of Texas at Arlington Libraries.

A third expedition, under the command of General
Winfield Scott, hit
Vera Cruz following an amphibious landing in March 1847 of 14,000 men
from the Gulf of Mexico.

From there, the Americans embarked on a tortuous journey toward Mexico
City, following the route traveled by Hernando Cortez centuries
earlier. Nearly every step of the uphill, mountainous road leading to
the "Halls of Montezuma" was bitterly challenged. Several difficult
battles were fought along the way, but Scott continued to advance.
After the fall of Chapultepec, the last major line of Mexican defense,
American troops entered Mexico City as conquerors on September 14,
1847. For all practical purposes, the Mexican War had come to an end.

The map of the United States
in 1848, following Mexican War. The pink to the left is the region
ceded by Mexico. The blue in the upper left is the Oregon Country. The
middle green is the state of Texas, while large yellow area is
remainder of Louisiana Purchase yet to be organized into states. Image
courtesy of Humanities-Interactive.

The Treaty of Guadalupe Hidalgo, signed on
February 2, 1848, formally
ended the war. Mexico was forced to give up California, the New Mexico
territory, and recognize the Rio Grande as the border between Texas and
Mexico.

In return, the United States paid Mexico $15 million and agreed to
assume debts totaling over $3 million that Mexico owed to American
citizens. From the "Mexican Cession" ultimately shaped the states of
California, Nevada, and Utah, and parts of Arizona, New Mexico,
Colorado, and Wyoming.

In 1853, Congress approved a payment of $10 million to Mexico for the
purchase of some 50,000 square miles of desolation along the southern
tip of what is today Arizona and New Mexico. The Gadsden Purchase, as
it was called, was thought to be suitable for a southern
transcontinental railroad being contemplated. Except for Alaska, the
Gadsden Purchase filled out the present continental boundaries of the
United States.

The dreams of all Americans who had believed in their nation's Manifest
Destiny had materialized. The boundaries of the United States now
reached from sea to shining sea.

Some gold hunters bound for
California took a ship to Central America, crossed land over the
Isthmus of Panama, then onto another ship on the Pacific side. Public
domain image.

By 1848, only a few hundred Americans had
settled in California. One of
them was a man named John Sutter, a European immigrant who set up a
successful sawmill in the Sacramento Valley.

On January 24, 1848, ten days prior to the acquisition of California by
the United States from Mexico, as specified by the Treaty of Guadalupe
Hidalgo, one of Sutter's employees, James W. Marshall, noticed a shiny
substance in a stream where he was building a sawmill. Tests later
proved it was gold!

Word of the discovery spread around the world like wildfire. Within a
year, many thousands of "49ers" were attracted to California in search
of gold, greatly accelerating the settlement of the California and the
West.

By the end of 1849, California's population had grown more than enough
to apply for statehood. When California's application to enter the
Union as a free state reached Washington, a crisis erupted. If
California entered the Union as a free state, the existing balance of
15 slave and 15 free states would be upset in favor of the North. Under
the terms of the Compromise of 1850, California was eventually admitted
as a free state (see more about this in the next chapter).

Some of the gold from the fabulous strike was
sent in a special
shipment to Philadelphia. The letters "CAL." were counterstamped by
mint officials on the reverse side of 1,389 quarter eagles bearing the
1848 date to show that they were coined out of gold originating from
the California gold fields. These "CAL." quarter eagles are
unmistakable links to one of the most significant events in American
history, are quite rare and have been highly valued by generations of
coin collectors.

The impact of the California Gold Rush cannot be overstated. The
massive influx of gold bullion upset the old ratio between gold and
silver, triggering a monetary instability that would last until until
gold and silver were finally removed from coinage, gold in 1933 and
silver in 1965.

As we saw a couple of paragraphs above, and shall see in more detail in
the next chapter, the gold discovery also renewed the rivalry between
the North and South. Indeed, it can be argued that the California Gold
Rush was one of the events leading to the American Civil War.

One of the very few images of
the original San Francisco Mint, seeing service from 1854 to 1873. Public
domain image.

By 1852, the California gold fields had yielded
millions in gold, yet
there was a severe shortage of coins to serve the Wild West population.
The deficiency of circulating coinage, the availability of a bullion
supply, and California statehood encouraged Congress to authorize a branch
mint at San Francisco, with the doors first opening in 1854. After
getting off to a slow start due to the lack of chemicals needed for
refining gold, the new San Francisco Mint started converting the
miners' gold into adequate coin supplies about three years after its
debut.

Prior to the start-up of the new mint, and then for a while
thereafter, the coinage needs of the population were partially being
met by private, state, and territorial minters. Today, quite a few
collectors are fascinated by these "pre-mint" California gold issues,
and actively collect them. Moffat & Company, Templeton Reid, and
Norris, Greig & Norris were some of the private companies issuing
coins from 49er gold. Moffat & Company in particular manufactured
enough coins to at least make a dent in the miners' need for coins.

A 49er pans for gold in the
American River. Fortune seekers quickly swelled California's
population, bringing statehood in 1850, and a new mint to San Francisco
in 1854. Public domain photo.

The California Gold Rush was a rare, astonishing
event, dividing
American history into a "Before" and "After". It was one of the biggest
mass movements of humanity since the beginning of time, and played a
large role in shaping the future of the United States.

The narrative is cast in a delightful story-telling mode, backed up by
intelligent analysis and historical fact. Most of the 49ers realized
they would not become wealthy in their quest, but the "Dream" and the
entrepreneurial spirit prevailed, setting the success template for a
long time to come.

Furthermore, Brands chronicles numerous accounts
of the people who
lived the experience, from John Fremont and Leland Stanford, to those
much less famous. He concludes by describing why these stories have a
national and international significance.

Two additional regular gold denominations were
issued beginning in 1849: the gold
dollar and the double
eagle (face value = $20.00). The 1849 double eagle is a one of a
kind specimen, on display in the numismatic collection of the
Smithsonian Institute. Starting in 1850, double eagles were minted in
quantities large enough for general circulation.

The silver three cent piece,
also known as the "trime". Image courtesy of Jake's
Marketplace..

In 1851, responding to the new three cent
postage rate, the three
cent silver "trime" was authorized. Notably, the trime had a silver
bullion value worth only 86% of its face value, a measure designed to
discourage coin melting. This was the first incident where a minted
coin's face value was greater than its intrinsic metallic value.

Silver three cent pieces were not widely accepted by the public.
Mintage totals dwindled rapidly after the first three years, finally
discontinued beyond 1873. Equally disliked was the three
cent copper-nickel coin, minted from 1865-1889.

Lately, the Rare Coin Values Index is behaving like it thinks its the Dow Jones. That would be an exaggeration of course, because the Index is not climbing at THAT meteoric pace, but it has now closed…